Delivery Matters: Why Supporting Small Builders Is Critical to Australia’s Housing Targets

Two years into the Housing Australia Future Fund (HAFF), just over 2% of the 40,000-home target has been completed. While nearly 9,500 homes are now under development and more than 8,000 are in planning, the reality remains: delivery at scale is slow, and Australia’s housing shortage is not waiting.

Large-scale policy announcements are important. But housing is ultimately built by people on the ground — developers, subcontractors, and most critically, small-to-medium builders who carry projects from concept to completion.

The HAFF model highlights two key delivery pathways: turnkey acquisitions and applicant-led developments. Each has merit. Turnkey projects may accelerate completion timeframes, particularly in greenfield areas. Applicant-led developments, however, often better reflect community needs and localised housing demand.

What is clear is this: funding structure determines speed.

When procurement models become complex, when debt burdens escalate, or when funding timelines compress, smaller operators struggle to compete. Yet these same operators are often best positioned to deliver tailored, location-sensitive housing outcomes.

At Renown Lending, we work closely with small and emerging builders who are navigating tightening bank credit conditions, rising construction costs, and increasing regulatory oversight. These builders are not speculative developers — they are local operators delivering townhouses, small apartment blocks, infill developments, and community-aligned housing.

The lesson from HAFF’s first two years is not simply about targets missed. It is about execution capability.

Australia does not have a shortage of builders willing to build. It has a shortage of flexible capital that allows them to do so efficiently.

Private capital, when structured responsibly, can accelerate viable projects. First and second mortgage funding, short-term bridging finance, and construction lending tailored to real-world timelines allow small builders to complete projects that otherwise stall in traditional funding channels.

Housing delivery requires:

• Speed of credit assessment
• Flexibility around servicing models
• Realistic project timelines
• Funding structures that align with asset exit strategies

When capital is too rigid, housing supply slows.

When capital is flexible but ethical, housing supply accelerates.

As federal programs evolve, it is essential that smaller, capable builders are not crowded out by debt-heavy frameworks or compressed timeframes that favour only large institutional players.

Supporting small builders is not just good business. It is an essential national infrastructure policy.

Renown Lending remains committed to backing those who are actually getting the job done.